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Unit 6: Industrialization and Development

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Industrialization

Key Concepts

Growth and Diffusion of

Industry

The Evolution of Economic Cores and Peripheries

Contemporary Patterns

Global Inequalities

Industrialization and the

Environment

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Part One: Key Concepts

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A) Introduction

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What is economic geography?

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Economic Geography studies the impact of economic

activities on the landscape and investigates reasons behind the locations of

economic activities.

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Economic Geography

Agriculture

Industry

International Trade

Resources

Transport and Communication

Others

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A Day in the Life

What might an average worker be doing on an average day in the Spring of 1553?

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A Day in the Life

What might an average worker be doing on an average day in the Spring of 1893?

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A Day in the Life

What might an average worker be doing on an average day in the Spring of 1973?

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A Day in the Life

What might an average worker be doing on an average day in the Spring of 2012?

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What is industrialization?

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Industrialization is the process by which economic

activities evolved from producing primary goods to factories that mass-produce

goods.

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Primary Economic ActivityVS.

Secondary Economic Activity

Agriculture

Industry

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Primary Sector

Secondary Sector

Tertiary Sector

Quaternary Sector

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•Agriculture•Animals• Fishing• Forestry•10,000 Years

Primary Sector

•Petroleum•Metals•18th Century

Secondary Sector

• Services•Post-Industry• Late 20th

Century

Tertiary Sector

•Research•Administration

Quaternary Sector

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Pre-Industrial Industrial Post

Industrial

Societies

Most Countries Some Countries Few Countries

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What is the difference between an LDC and MDC?

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Less Developed Countries have not developed industry. More Developed Countries

are often post-industrial countries.

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B) Economic Indicators of Development

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What is Gross Domestic Product?

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Gross Domestic Product is the value of the total output

of goods and services produced in a year.

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US GDP: 14,526,550 Million Dollars

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Per Capita GDP

GDP / Total Population

US Per Capita: $48,800

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GDP

• $20,000 in MDC

• $1000 in LDC

Types of Jobs

• MDC – Fewer Primary Sector

• LDC – More Primary Sector

Productivity

• Value Added Per worker is higher in MDCs

Raw Materials

• MDCs have greater access to Raw Materials

Consumer Goods

• MDCs can afford Consumer goods and have more access to them.

How MDCs and LDCs Differ:

Economic development is often accompanied by social development.

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C) Theories of Economic Development

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What is the Modernization Model

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The Modernization Model says that the Industrial Revolution was spurred by a combination

of prosperity, trade connections, inventions, and

natural resources.

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Britain Industrializes

Wealth became a sign

of virtue instead of kinship.

Western European

Nations and the US

followed Britain

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A few key points:

• According to the M.M., any country can reap the benefits of modernization.

• Tradition is the greatest barrier to economic development.

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A few key points:

• Culture can discourage people from adopting new technologies that would raise standards of living.

• High-Income countries can help poorer countries by encouraging them to control population, increase food production, and take advantage of industrial technology.

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Rostow’s Stages of Development

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• Industry expands.• Luxury items become necessities.• High Incomes, a majority of workers involved in the service

sector.

High Mass Consumption

• Economic growth is widely accepted.• The economy diversifies.• Poverty is greatly reduced and material goods much

more common.• Cities grow, and modernization is evident in the core.• International trade expands.

Drive to Technological

Maturity

• People begin to experiment with producing goods for trade with others for profit.

• A state industrial revolution takes place.• Urbanization, technology, and production

increases.

Take-Off Stage

• Life is built around families.• Very Limited Wealth.• Subsistence Farmers.

Traditional Stage

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Criticisms

Rich nations often block the path of

poor.

Poorer nations have to

develop from a position of weakness.

Suggesting that poverty is the fault of the

victims is wrong.

A justification for capitalism

to exploit non-capitalism.

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What is Dependency Theory

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Dependency Theory says that the economic development of many countries is blocked by

industrialized nations that exploit them.

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A Few Key Points.

• Dependency theory blames MCDs that control or who once controlled LDCs through colonialism.

• Argues that political liberation from colonialism has not translated into economic health.

• Dependency theory is largely an outgrowth of Marxism.

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Wallerstein’s Capitalist World Economy Model

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• Rich nations that fuel the world’s economy.• Take raw materials from around the world and channel them

to North America, Europe, Australia, and Japan.

Core Countries

• Low-Income countries brought about through colonialism.• Support rich countries by providing inexpensive labor and a

large market for industrial products.

Periphery Countries

• The rest of the world. • More powerful than periphery, but still dominated in some

way by the core.

Semiperiphery Countries

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Criticisms

Treats wealth as a “0 Sum

Theory”

No country willingly blocks

another from success.

Places blame on countries

that have helped others.

Ignore cultural issues

that affect poverty.

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Part Two: Growth and Diffusion of Industrialization

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A) Before the Industrial Revolution

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Before the Industrial Revolution

There were industrial centers before the late 18th Century but it was isolated. Most industries

were cottage industries.

Examples:Chinese Silk Factories

Metal Workshops in India

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What is a cottage industry?

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Cottage Industries are home-based manufacturers where

people manufacture tools and agriculture equipment for their

own communities.

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B) The Start of the Industrial Revolution

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The Early 18th Century

Early factories in Great Britain during the 18th Century were run by water running down slopes.

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The Most Important Invention

In 1769, James Watt built the first efficient steam engine. This was the most important invention to the Industrial Revolution.

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What is the Industrial Revolution?

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The Industrial Revolution was the process of technological

change that started in the late 1700s that transformed how

goods were produced and obtained by the people.

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Effects of the

Industrial Revolution

Social Changes

Economic Changes

Political Changes

Population Changes

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Industries affected by the Industrial

Revolution

Iron

Coal

Transportation

Textiles

Chemicals

Food Processing

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C) Diffusion of the Industrial Revolution

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Great Britain

Belgium/France (late 1700s)

The United States (1790s)

Italy, Netherlands, Russia, Sweden (late 1800s)

Asia, Middle East and Africa (Mid 20th Century)

The United States entered the IR later than Belgium and France but expanded more rapidly.

Most of Europe came late to the party because of revolution and strife (ie. French Revolution, Napoleonic Wars)

Diffusion of the Industrial Revolution

The Middle East and Africa entered the IR because of WWI and the need for oil.

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Part Three: The Evolution of Economic Cores and Peripheries

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A) Introduction

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Why do you think that some places were affected by industrialization while others were not?

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Location Theory Locational Independence

Theory

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A) Location Theory

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What is Location Theory?

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Location Theory explains the locational pattern of

economic activities by identifying factors that influence this pattern.

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• Develops as transportation improves.

• Less dependent on location

Secondary Industry

• Develops around natural resources.

Primary Industry

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Secondary Industry Locations

Variable Costs

Friction of

Distance

Distance Decay

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Core• Primary and

Secondary Industries

Semi-Periphery• Secondary

Industries

Periphery• Neither

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What is the Least Cost Theory?

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Alfred Weber’s Least Cost Theory is a theory that explains the location of

industries based on transportation, labor, and

agglomeration.

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Transportation

The site chosen must entail the lowest possible cost of A) moving raw materials to the factory,

and B) finished products to the market.

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Weight (Bulk) Gaining• Soft Drink

Manufacturing

Weight (Bulk) Losing• Copper• Timber• Most

Agriculture

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Location Triangle

The location triangle is used to determine the best place to locate a manufacturing plant based

on Weber’s Model.

Market Resource1

Resource 2

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A) Least Cost Theory Continued

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A Case StudyI am the CEO of a rubber company looking for a place to locate my new plant which will purify petroleum into the rubber products before sending it on to Houston, Texas for further processing. I import petroleum from the Middle East.

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What is the Break of Bulk Point?

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The Break of Bulk Point is where the transfer of goods

among transportation modes is possible.

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Product per Case Cost/Rail Cost/Road

Fuzzy Mice .05 .01

Concrete 1.00 2.00

Oil .50 .60

Town

Resource 1 Resource 2

5M

6M3M

10M 11M

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What is the Location Interdependence Theory?

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Location Interdependence Theory is a theory that explains the location of industries based on the

location of their competition.

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Variable Revenue Analysis

The ability of a firm to capture a market that will earn it more money and customers than the

competition.

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The Beach

How would Locational Inderdependence Theory play a part in where A and C would choose to locate?

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Situation Factors• Transportation Issues• Bulk-Gaining, Bulk Losing

Site Factors• The cost of Land, Labor, and Capital• Climate• Access to Amenities

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Part Four: Contemporary Patterns in Industrialization

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A) Globalization and Infrastructure

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How Does Globalization Affect Industrialization?

• Every country’s development is dependent on the rest of the world.– With the increase of Space-Time Compression, it is

possible to locate businesses in places not before considered.

– The Internet has made it possible for markets to exist where they have not before.

– In order to accommodate global industrialization a country must develop infrastructure.

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What is infrastructure?

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Infrastructure includes services that support economic

activities. It provides for transportation,

communication, education, and other external needs of a

company.

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B) Primary Industrial Regions

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Primary Regions

Western and

Central Europe

Eastern North

America

Russia and the

Ukraine

Eastern Asia

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• Expanded greatly after WWI.• Was largest in Germany until WWII.• Rebuilt with the help of America after WWII.

Western and Eastern Europe

• The North American Manufacturing Belt extends from Boston and New York through Philadelphia and Baltimore.

• The Southeastern District: Birmingham, Alabama to Richmond, Va.

• Another: Oklahoma to Dallas, Houston, and New Orleans.• Northern California: San-Fransisco• Southern California: Los Angeles to San-Diego• Pacific Northwest: Portland, Oregon through Seattle,

Washington and Vancouver in Canada.

North America

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Russia and the Other Soviet Republics

• Much manufacturing up through the 1930s followed the Volga River.

• Other regions followed the Trans-Siberian Railroad.

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Asia

Japan

• The Kanto Plain• Tokyo

The Four Tigers (Export Oriented Industrialization)

• South Korea• Taiwan• Hong Kong• Singapore

China

• Northeast District in Manchuria

• Beijing, Shanghai, Hong Kong

• The Pacific Rim

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C) Secondary Industrial Regions

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Secondary Industrial Regions

Southeast Asia

Northern Africa

Mexico

Brazil

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What is the maquiladora?

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The Maquiladora is a manufacturing zone created in the 1960s in Mexico that mostly produces American

products.

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What is the NAFTA?

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NAFTA is the North American Free Trade Agreement which

eliminated barriers to free trade in North America.

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Part Five: Global Inequalities

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A) Challenges for More Developed Countries

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Protection of Markets

MDCs are having to work to protect their markets from newly developing countries. They

often do this by establishing Trading Blocs.

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What is a trading bloc?

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A Trading Bloc is a conglomeration of trade

between regions.

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Benefits of Trading

Blocs

Little to No

Taxes

Ease in crossing borders

Cooperation Encouraged

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3 Important

Blocs

NAFTA

European UnionEast Asia

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Most cooperation and competition between trading blocs take place between transnational

corporations which are also conglomerate corporations

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Deindustrialization

In many MDC economies, tertiary development is replacing secondary development.

Growth of LDC industry is taking jobs away from

MDCs.

This is a natural progress of society. Service jobs is the mark of a developed

society.

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B) Challenges for Less Developed Countries

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Challenges of LDCs

Distance from Market

Inadequate Infrastructure

Competition with Existing

Manufacturers

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The New International Division of Labor

The selective transfer of some jobs to LDCs.

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Part Five: Globalization and the Environment

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Industrialization and Fossil Fuels

As more and more countries become revolutionized, the need for fossil fuels grows exponentially.

While we know how many proven reserves we have, we do not know how many potential reserves we

have.

¼ of the world’s population consumes ¾ of the world’s fossil fuels.

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Environmental Impact Concerns

Global Warming Acid Rain

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Solutions

Prevention

Technological Change

Mitigation

Compensation

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The End.